Hamilton Lane (NASDAQ:HLNE) Reaches New 1-Year Low - Should You Sell?

Key Points

• Shares hit a new 52-week low — HLNE traded as low as $87.87 (last $89.15) and was down about 5.7% on heavy volume.
• Analysts remain generally positive — the consensus rating is "Moderate Buy" with a $155.38 target, after upgrades from JPMorgan and KBW even as UBS and Morgan Stanley trimmed targets.
• Underlying fundamentals and ownership are strong — the company beat quarterly EPS estimates ($1.55 vs $1.28) with revenue up 18% and a 30.6% net margin, pays a $2.16 annual dividend (2.4% yield), and is 97.4% institutionally owned with major funds increasing positions.

Hamilton Lane Inc. (NASDAQ:HLNE - Get Free Report) hit a new 52-week low during mid-day trading on Monday . The stock traded as low as $87.87 and last traded at $89.15, with a volume of 1695161 shares changing hands. The stock had previously closed at $94.84.

Analysts Set New Price Targets

Several analysts recently issued reports on the company. JPMorgan Chase & Co. upgraded Hamilton Lane from a "neutral" rating to an "overweight" rating and set a $166.00 price target for the company in a report on Thursday, April 16th. Keefe, Bruyette & Woods increased their price target on Hamilton Lane from $161.00 to $170.00 and gave the company an "outperform" rating in a report on Thursday, January 8th. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Hamilton Lane in a research report on Thursday, January 22nd. UBS Group lowered their price objective on shares of Hamilton Lane from $184.00 to $150.00 and set a "buy" rating for the company in a research report on Friday, February 20th. Finally, Morgan Stanley lowered their price objective on shares of Hamilton Lane from $159.00 to $141.00 and set an "equal weight" rating for the company in a research report on Tuesday, April 21st. Six research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $155.38.

Hamilton Lane Stock Down 5.7%

The firm has a 50 day moving average price of $102.67 and a two-hundred day moving average price of $121.50. The company has a quick ratio of 3.27, a current ratio of 3.27 and a debt-to-equity ratio of 0.21. The company has a market capitalization of $4.99 billion, a price-to-earnings ratio of 16.06 and a beta of 1.33.

Hamilton Lane (NASDAQ:HLNE - Get Free Report) last announced its earnings results on Tuesday, February 3rd. The company reported $1.55 earnings per share for the quarter, beating the consensus estimate of $1.28 by $0.27. The company had revenue of $198.59 million during the quarter, compared to the consensus estimate of $195.36 million. Hamilton Lane had a return on equity of 27.82% and a net margin of 30.59%.The company's revenue was up 18.0% on a year-over-year basis. During the same period last year, the firm earned $1.25 earnings per share. As a group, sell-side analysts expect that Hamilton Lane Inc. will post 6.2 earnings per share for the current year.

Hamilton Lane Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Monday, April 6th. Stockholders of record on Friday, March 20th were paid a dividend of $0.54 per share. The ex-dividend date was Friday, March 20th. This represents a $2.16 annualized dividend and a dividend yield of 2.4%. Hamilton Lane's dividend payout ratio (DPR) is currently 38.78%.

Institutional Trading of Hamilton Lane

A number of hedge funds have recently made changes to their positions in the stock. Wasatch Advisors LP grew its position in shares of Hamilton Lane by 15.8% during the first quarter. Wasatch Advisors LP now owns 1,751,596 shares of the company's stock worth $174,109,000 after buying an additional 239,397 shares in the last quarter. Invesco Ltd. grew its position in shares of Hamilton Lane by 7.3% during the third quarter. Invesco Ltd. now owns 1,534,836 shares of the company's stock worth $206,880,000 after buying an additional 104,977 shares in the last quarter. Champlain Investment Partners LLC grew its position in shares of Hamilton Lane by 33.8% during the third quarter. Champlain Investment Partners LLC now owns 1,388,380 shares of the company's stock worth $187,140,000 after buying an additional 350,437 shares in the last quarter. State Street Corp grew its position in shares of Hamilton Lane by 1.4% during the fourth quarter. State Street Corp now owns 1,293,854 shares of the company's stock worth $174,458,000 after buying an additional 18,296 shares in the last quarter. Finally, Principal Financial Group Inc. grew its position in shares of Hamilton Lane by 148.3% during the fourth quarter. Principal Financial Group Inc. now owns 1,085,850 shares of the company's stock worth $145,844,000 after buying an additional 648,588 shares in the last quarter. Institutional investors and hedge funds own 97.40% of the company's stock.

Hamilton Lane Company Profile

Hamilton Lane is a global private markets investment management firm specializing in the full spectrum of private equity and credit strategies. The company partners with institutional investors and wealth managers to design, implement and manage customized portfolios in primary fund investing, secondary market transactions and direct co-investment opportunities. By combining investment selection, portfolio construction and ongoing monitoring, Hamilton Lane seeks to optimize risk-adjusted returns across diverse private markets exposures.

Founded in 1991, Hamilton Lane has developed a track record of investment and advisory services in private markets.

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